Niccolo De Masi, the person behind the hit cellular sport Kim Kardashian: Hollywood, has launched his second “blank check” preliminary public providing (IPO) firm in six months. And after buying on-line playing firm Rush Street Interactive and taking it public for $1.eight billion, De Masi now desires to focus on a sport firm or tech firm.
De Masi introduced that his dMY Technology Group II has raised $240 million for a particular objective acquisition company (SPAC) on the New York Stock Exchange. In that transaction, traders have as soon as once more put him accountable for some huge cash, and De Masi will get to determine what to accumulate with all of that money. What might occur? Well, a sport firm might go public in very quick order, if all goes properly.
“I jokingly say that if you don’t do two IPOs in a year, then you’re just not trying, right? We think the public option can be seen in a new light,” De Masi mentioned in an interview with GamesBeat. “Public markets have not seen a lot of enthusiasm from early-stage companies. We are an option now that everyone is willing to discuss.”
The SPAC business is booming now, because it’s a manner of going public with out all the problem. Investors put their cash right into a shell entity, and the administration will purchase a number of corporations. De Masi mentioned it is going to concentrate on gaming, with a complete enterprise worth within the vary of $1 billion to $three billion.
That seems like lots, however it’s truly small for an IPO nowadays. And that has helped SPACs turn into extra fashionable.
De Masi mentioned that many corporations used to go public and get entry to cheap capital at a lot smaller sizes than they do as we speak. He guarantees the belief and high quality of public firm processes, which may be interesting to smaller companies that don’t wish to take a few years to return up to the mark on such enterprise practices.
“With regulation comes certainty,” he mentioned. “During shelter-in-place, it is faster to raise money when you are public, because everyone trusts you,” he mentioned. “This behavioral change favors being public.”
De Masi is the previous CEO of Glu Mobile, which nonetheless operates Kim Kardashian: Hollywood, which broke open the celeb cellular video games market when it debuted in 2014. He then began signing up quite a lot of A-list celebrities. Some video games, like Restaurant Dash with Gordon Ramsay did properly, however others, equivalent to these for Britney Spears and Katy Perry, bombed.
De Masi gave up the CEO title at Glu in 2016 earlier than diving into the SPAC enterprise. He thinks there hasn’t been sufficient public firm formation lately, as corporations have been cautious of the regulatory setting in addition to the volatility of shares. But De Masi mentioned he can use his expertise operating public corporations like Glu to assist youthful corporations study the ropes and thrive on public capital. He is working together with his companion Harry You once more for the brand new SPAC.
“I think it’s a really exciting time to be a public company entrepreneur,” he mentioned. “You can take advantage of the public capital and grow faster. We did well with Rush Interactive and I want to do another great one.”
One factor in regards to the SPAC enterprise is which you could’t begin one by having one specific goal firm in thoughts. So along with video games, De Masi might be taking a look at alternatives in client software program all over the world. He will concentrate on these which can be creating compelling cellular app experiences in gaming, leisure, training, work productiveness, e-commerce, relationship, monetary know-how, and well being and wellness. Goldman Sachs and Needham managed the creation of De Masi’s new SPAC. De Masi mentioned he might be on the look ahead to corporations which can be profiting from the cloud, synthetic intelligence, and machine studying.
“We’re not ruling out the companies that are adjacent to gaming,” he mentioned.